Luna Classic Price Remains Bullish with 1.2% Burn Tax Imposed
Over the last few weeks, Luna Classic price has continued to rise on the news that token burns will be implemented and exchanges will continue to support it, despite the project already having completely failed. The LUNC price appears to be rising on the news that a burn of 1.2% will be implemented for each transaction – pivoting the focus of the project in an attempt to achieve a different type of value capture.
Luna Classic price is rising
The LUNC price continued to rise over the past few days, adding to gains that it has been making throughout the course of the last month.
In the past week, the price has appreciated over 60%, with gains of over 360% over the past 30 days.
Many had thought that the project would have been a complete write-off, but the community have showed that they have to what it takes to recover somewhat, even if their mission to increase the value of their holdings is no longer related to keep a stablecoin at its peg.
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In order to try and spice up the tokenomics somewhat, the team at Luna Classic have decided to implement burns. The idea of this is to ensure that the project becomes significantly more deflationary.
Whereas the downfall of the project was the fact that LUNA became far too inflationary in an attempt to restore the peg of UST, it seems that the community is now headed in the opposite direction and has voted overwhelmingly to support a movement to impose a 1.2% burn on each transaction.
A 1.2% burn on each transaction means that as long as there is volume on LUNC, it will become more and more deflationary.
Does Luna Classic have a bright future?
In the same that Ethereum Classic still exists despite the overwhelming majority of dApps being run on Ethereum’s main chain, and the fact that Ethereum Classic has suffered numerous 51% attacks in the past, Luna Classic continues to exist.
Unlike companies on the stock market, which may stop trading after declaring bankruptcy and shutting down, cryptocurrencies never really go away. Even though Terra objectively failed in their mission to create an algorithmic stablecoin with UST, the community still exists, and people are still trading the project that is down 99% from ATHs.
The fundamentals for a project like this to grow sustainably are relatively weak, but the community is still strong and determined. Not only this, but when one considers the enormity of the collapse, the market cap fell to a level which was incredibly low for a community that has so many holders and evangelists worldwide– a recovery could be quite steep, even if built on a completely different premise.